The workforce is changing. Unless employers sit up and take note, they may find themselves struggling against a tide of talent shortages, technological changes and heightened employee expectations.
For instance, a recent study by the Financial Times found that the UK’s working age population was going to shrink by as much as 25%, meaning that the available talent pool is just going to keep on shrinking. It also means that by 2030, half of our entire workforce will be over the age of fifty (partly because we’re having less children as a nation). The stats should act as a wakeup call for all personnel and recruitment teams, as recruiting younger talent will become even more of a challenge and retaining experienced professionals will be just as important.
So, what should employers do?
The importance of learning and development
The first step is to recognise the needs and priorities of the modern workforce. A study from Deloitte found that both Gen Z and Millennials placed learning and development opportunities as their second highest priority when choosing employment, second only to a good work-life balance. At the same time, mid-career Gen X are expressing their frustration at the limited training and upskilling opportunities available to them. According to a study by Indeed (published in HR Magazine), 34% of Gen X in the UK say there is a lack of development opportunities, leading to a low satisfaction with their employment.
It’s clear then, that learning and development must be central to any recruitment and retention strategy, but it’s also possible to take a step back to look at things more holistically as the shrinking pool of talent isn’t the only challenge that’s facing the UK workforce.
Skills shortages are hurting productivity and wellbeing
The British Chambers of Commerce found that 62% of organisations are facing skills shortages, with 68% saying that these shortages have increased the workload of their current employees. It’s perhaps no surprise then that only 19% said that they had a written skills plan in place. As a result, workforces across the country are feeling burnt out with business productivity suffering along with employee wellbeing.
This is despite the fact that learning and development has been proven to improve wellbeing, with research from The Open University finding a strong link between employee training and positive wellbeing.
There is a particular shortage of digital skills in the UK, with research from University of Birmingham finding that there is a critical lack of advanced, intermediate and even basic AI and software development skills.
Younger workers prioritise wellbeing and inclusivity
A study from Oxford Brookes showed that Gen Z’s standout priorities in the workplace were their work-life balance, mental health as well as having an employer who prioritised key environmental, social and governance (ESG) issues like diversity and inclusion. And these aren’t just Gen Z priorities. Deloitte found that Millennials were just as likely to value wellbeing and inclusivity. In fact, both Gen Z and Millennials would happily reject any roles offered by employers who don’t share their values.
What employers can do to plan for a new era
While many employers are already struggling with recruitment and retention, it’s not too hard to look at the challenges as an opportunity for improvement. After all, a workforce hungry to develop itself, which also expects fair and equal treatment for everyone, is no bad thing.
Viewed in this light, companies will succeed as long as they develop and implement a workforce strategy that recognises their workforce’s immediate needs and values, along with their future aspirations.
We’d recommend focusing on three key areas, including:
- Upskilling and reskilling: Companies must invest in training programs that will equip their employees with the necessary skills to help them succeed in their roles, while also introducing modern skills like learning how to use AI to improve productivity.
- Attracting new talent: To attract the new talent that’s entering the workforce, it’s important for employers to focus on the needs of younger generations, such as improved wellbeing. It’s also vital to create a workplace that prioritises work-life balance, sustainability and a culture that values diversity and inclusion.
- Fostering a culture of continuous learning: Emphasising a culture that values lifelong learning will be crucial. This can be achieved through mentorship programs, coaching, and facilitating best practice sharing via peer-to-peer learning programs.
Leyton UK’s culture of learning
At Leyton UK, we’re proud of our diverse culture of learning.
It’s been a busy year. As well as a large portion of our employees receiving coaching to progress their careers, twenty-one percent of our team members have undergone structured professional development this financial year. Last year, this was as high as thirty percent! This development took the form of courses or qualifications to grow skills in fields including surveying, taxation, accounting, project management and learning and development.
We’ve also been accredited by the LPI as an Exceptional Learning Organisation for two years in a row, with 95% of our team saying that they’ve received the development they need for their current position, and 85% saying they’ve received the development they need to move into their next role.
Find your perfect career at Leyton UK: We’re hiring!
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